2023 Report details for project: Affordable Homes Programme
| Project name | Affordable Homes Programme - there is only one report for this project |
|---|---|
| Google search | Google search on project name (opens in new window)  |
| Contracts | Contracts search (opens in new window) - under development |
| Organisation | DLUHC (D4) - see all reports for this organisation |
| Report year | 2023 (data is from September 2022) |
| Category | Infrastructure - see all reports for this category |
| Description: | The Affordable Homes Programme (AHP) is one of the primary vehicles used by Government for the delivery of affordable housing in England. It allocates grant funding to Local Authorities (LAs) and Housing Associations (HAs) to help support the capital costs of developing affordable housing for rent or sale.The AHP operates with a budget of 11.5bn, delivering tens of thousands of homes across England for both rent and sale.Delivery of the programme is delegated to our delivery partners, Homes England (HE) and the Greater London Authority (GLA). Our delivery partners have full delegated responsibility to make spending and allocation decisions in line with their targets, agreed assessment criteria, and within predetermined delegation limits. |
| DCA (RAG) | Amber |
| DCA text: | The IPA's DCA rating at 22/23-Q4 is Amber. This is primarily due to the following factors. The programmes delivery confidence is currently rated as amber. This reflects the risk that the programme will be unable to deliver the commitments in the original business case because of changes in the wider economy (primarily high inflation), and pressures on the finances of social housing providers. In Quarter 4, the programme gained agreement, through a revised business case, to re-baseline the programmes delivery, spend profiles and final targets, with contracts with providers being renegotiated to align with that. This is due to complete in late Spring. |
| Start date | 2021-01-03 |
| End date | 2029-04-30 |
| Schedule text | The project's end-date at 22/23-Q4 is 2029-04-30. This is primarily due to the following factors. In Quarter 4, the programme gained agreement to a revised business case for a re-baselined programme of delivery, and contracts with providers are being renegotiated to align to that new agreed position. Once completed, the programme expects to be back on track to deliver updated targets within the original schedule, and the Programme is set to be rated as green in delivery confidence. The re-negotiation of contracts is due to complete in late Spring. |
| Baseline | £1,895.17m |
| Forecast | £1,114.36m |
| Variance | -41.00% |
| Variance text: | The Affordable Homes Programme has delivered c. 4,400 fewer starts on site than originally forecast this year, leading to less capital spend than planned. This is primary due to changes in the wider economy and environment for social housing landlords impacting providers ability to fund new development. The programme is currently in the process of re-negotiating contracts with providers in order to address the additional costs, as a result of changes to the economy. It is expected that some of the lost delivery is re-forecast and planned in future years, but some may fall away completely. The re-negotiation of contracts is due to complete in late Spring. |
| Whole Life Cost | £11,583.00m |
| WLCost text: | The project's departmental-agree Whole Life Cost at 22/23-Q4 is 11583m. This is primarily due to the following factors. Whole life costs for the programme have remained the same as last year, however overall delivery will fall short of the original business case. This is primarily due to high inflation impacting the costs of building new development. The grant assumptions made in 2020 will no longer support the level of delivery expected at the time. Since then, the programme has gained agreement for a revised, re-baselined business case and contracts with providers are being renegotiated to align with that. Once complete, the programme is expecting to be rated as green for delivery confidence. |
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| Sourcefile | IPA_2023.csv |
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Acknowledgement: GMPP data has been re-used under the Open Government Licence.